Six years ago, LVMH CEO Bernard Arnault and then-U.S. President Donald Trump inaugurated a Texas factory meant to produce handbags for Louis Vuitton, one of the world's most renowned luxury brands. However, recent reports from 11 former employees reveal significant production challenges at the facility. According to insiders, the Texas plant has consistently underperformed compared to other Louis Vuitton factories globally.
The factory's issues, which had not been previously reported, highlight the difficulties LVMH faces in establishing a manufacturing presence in the U.S. as a strategy to avoid tariffs on European-made goods. Ludovic Pauchard, Louis Vuitton's Industrial Director, acknowledged the production hurdles, attributing them to a shortage of skilled leather workers capable of meeting the brand's quality standards.
Errors during cutting, preparation, and assembly have led to leather wastage of up to 40%, significantly higher than the industry norm of 20%. The high-pressure work environment has also contributed to quality control lapses. While Pauchard admitted past issues, he claimed they have been resolved. Despite these challenges, Louis Vuitton remains committed to ensuring all products meet its quality standards.
